HR Glossary
Time Tracking

Time Tracking

Updated on:
August 22, 2022


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Table of Content

What is Time Tracking?

Time tracking is the process of maintaining accurate records of how much time an employee spends on work activities, Time tracking software tracks employees’ time for both payroll and billing purposes.

The process of time tracking ensures that employees work the right amount of hours and are compensated accordingly. If an employee has spent too much time on a project, then the employee’s manager can direct the employee to work on other aspects of the project.

Time Tracking is split into 3 important elements:

  1. Time entry.
  2. Reporting
  3. Approvals

What are the Benefits of Time Tracking?

Time tracking benefits managers because it allows them to analyze which areas of work are efficient and cost-effective. Managers can continually tweak and improve their business processes by tracking their employees’ time.

The most important benefit is that it can help you to be more productive with your time. If you know how much time you have available, and you track how you spend that time, you can make better decisions about how to use your time.

Time tracking can also help you to identify areas where you may be wasting time. If you see that you are spending a lot of time on activities that are not productive, you can make changes to your routine to try to improve your productivity.